Dubai Debuts Own Cryptocurrency Valued At $0.17 Per Coin

Dubai is debuting a digital currency called DubaiCoin with an international starting price of $0.17 per coin, according to a press release.

Consumers can use DubaiCoin to pay for goods and services, both online or in person, the release stated. The intent is for the coin to be used in place of regular paper money. The circulation of DubaiCoin will be controlled by the city itself as well as authorized brokers.

According to the release, Dubai “has plans to go further in its push to play an increasingly important role in the future of global finance and trade, and its plans for the next several years are firmly focused on DubaiCoin and the goal of becoming the world’s first blockchain-powered government.”

Muhammad Chbib, former CEO of Tradeling, told PYMNTS in a conversation last fall that suppliers have been changing their minds about the merits of digital sales tools, and buyers have been looking into newer ways to navigate third-party supply chain service providers. More vendors are going digital, Chbib said, so the supplier diversification is working for them, as digital commerce opens up new ways for vendors to make sales.

Citi has studied the coming importance of central bank digital currencies (CBDCs), saying the world is at an “inflection point” with money and there are different ways in which payments could be modernized, PYMNTS reported. The increased interest globally in bitcoin and other cryptocurrencies has only fueled CBDCs.

Citi said in April that a surge in cryptocurrency had driven much of the adoption of digital money. A lot of interest has also came from institutional investors and corporates.